Warburg-Backed Brazil Pet Store IPO Raises at Least $416 Million

(Bloomberg) -- Brazilian pet shop chain Petz and holders including Warburg Pincus are raising at least 2.2 billion reais ($416 million) in an initial public offering, people familiar with the matter said.

Pet Center Comercio e Participacoes SA, as the firm is formally known, founder Sergio Zimerman and Warburg Pincus are poised to sell 163,265,306 million shares at 13.75 reais apiece, the people said, asking not to be named as the information isn’t public yet. The price is at the mid of the marketed range.

Petz declined to comment.

If the additional and supplementary allotments are fully sold, the total raised could reach about 3 billion reais and Warburg Pincus’ stake in the Sao Paulo-based company would fall to 5.5% of voting shares from a current 55.1%, according to calculations based on the prospectus.

Brazilian share offerings have soared 38% this year to about 90 billion reais, including IPOs totaling 12.4 billion reais, according to data compiled by Bloomberg. With interest rates at all-time lows, investors are seeking better returns in equities and companies are rushing deals to market.

Petz, which was founded in 2002 and has 110 stores, offers from products to health services for pets. The company’s adjusted Ebitda totaled 66.9 million reais in the first half of the year, up from 40.7 million reais the same period in 2019.

Banks running the deal were Itau BBA, Santander, Bank of America, JPMorgan and BTG Pactual.

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